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Luca Piffer Country Manager - Italy 2 GW Vertical Integration: The LDK Solar approach The Solar Future Brussels, March 23, 2011

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  • 1. 2 GW Vertical Integration: The LDK Solar approach Luca Piffer Country Manager - Italy The Solar Future Brussels, March 23, 2011
  • 2. DisclaimerThe presentation is prepared by LDK Solar Co., Ltd. (LDK" or the Company) and is beingpresented solely for the purpose of corporate communication and general reference. Thepresentation is not intended as an offer to sell, or to solicit an offer to buy or form any basis ofinvestment decision for any class of securities of the Company in any jurisdiction. All suchinformation should not be used or relied on without professional advice. The presentation is abrief summary in nature and do not purport to be a complete description of the Company, itsbusiness, its current or historical operating results or its future prospects.This presentation contains forward-looking statements that involve risks and uncertainties. Allstatements other than statements of historical facts are forward-looking statements. Thesestatements involve known and unknown risks, uncertainties and other factors that may causeour actual results, performance or achievements to be materially different from thoseexpressed or implied by the forward-looking statements.This presentation is provided without any warranty or representation of any kind, eitherexpressed or implied. The Company specifically disclaims all responsibilities in respect of anyuse or reliance of any information, whether financial or otherwise, contained in thispresentation.
  • 3. LDK Solar Company Overview Overview Key Strengths Demonstrated Leadership in solar A Leading, Vertically-Integrated, Wafer Manufacturing: #1 Worldwide Manufacturer of PV Products Vertically Integrated Solar LDK is one of the worlds leading, low-cost Manufacturer solar manufacturers Proven Cost Reduction Founded in Xinyu, China in 2005 Roadmap Listed at NYSE since June 2007 Strong and Diversified Wafer >20.000 Employees, est. 2,5 Bil. USD and Module Customer Base Sales 2010 The Company has pursued a large scale Attractive Growth Strategies vertical integration production capacity to continuously reduced costs Solar Park investments in Europe and China Strong Financing support from Chinese Bank
  • 4. Solar Industry Growing Rapidly New incentives available from new countries out + of traditional PV markets. BUT with lower FiT Increasing demand of Energy from Developing + Countries. BUT with low finance power Increasing demand of PV Energy from + Developed countries. BUT at lower cost Our Vision Reduction of PV Energy cost will be highly + required ( must !) High Capacity Fully Vertical Integrated PV = Industry + Global Alliance with Strategic Partner
  • 5. Our Cost Reduction Roadmap 2,0 GW = GRID PARITY The Largest High quality Fully Integrated high efficiency PV Industry products in the World + Competitive + cost structure Economies + of scale & rapid growth Vertical Integration
  • 6. 2,0 GW from Sand to PV Modules 2,0 GW Fully Integrated PV Industry Polysilicon Plant: TCS Multi Ingot Line- DSS Furnace Mono Ingot Line- Pullers Wafer Line- Wire Saw Cell Production Line Module Line
  • 7. 2,0 GW LDKs Vertical Integration Strategy Silicon Ingot Wafer Cell Module In-House In-House & In-House In-House In-House Production OEM 2,0 GW 5 in 1 Sectors to reduce the PV costs
  • 8. 2,0 GW LDKs Vertical Integration Strategy Silicon Ingot Wafer Cell Module In-House Production Produces solar and semiconductor grade polysilicon and chemicals 11,000 MT capacity today 25,000 MT capacity by end of 2011
  • 9. Overview of LDKs Polysilicon Facilities LDKs Polysilicon Facilities Production Has Begun in the 15,000 MT Plant 2 Production Sites both in Xinyu September 2009 Today Ma Hong Plant Started Ramp Up Production Proceeding 7 Km East of LDKs HQ Quickly 15,000 MT Planned Capacity Xia Cun Plant 2009 2010 Now 15 km North of LDKs HQ 3,000 MT Planned Capacity LDK Polysilicon Production (MT) LDKs Polysilicon Facilities are Designed with Best in Class philosophy: Total 1Q 10: 692 MT 288 MT Lowest-cost Proven Technology 228 MT Semiconductor Grade Polysilicon 176 MT Low Environmental Impact: Si In Si Out Highest Design Safety Standard Highly Instrumented and Automated
  • 10. LDK Solars Close-Loop Modified Siemens Process A closed loop process enables LDK Solar to further lower the cost of polysilicon production Close-loop process is in place for both the small and large plant TCS is being synthesized and STC is being recycled LDK Solar will fully ramp up its closed loop process by end of 2010 MG Silicon In Polysilicon Out Crude TCS Pure TCS TCS Synthesis Purification Polysilicon HCl STC STC H2 STC TCS TCS TCS H2 HCl STC Converter OGR STC Converters Poly OGR STC TCS H2 HCl
  • 11. LDK 15,000 MT Poly Plant The biggest single polysilicon plant in the world
  • 12. As Seen From Space! LDK Mahong 15,000 MT Polysilicon Plant Hydrogen Plant Tank Farm Converter Waste water Building and vent gas plantHCL Plant OGR Reactor Halls TCS Synthesis and Purification Utilities Plant
  • 13. Polysilicon Production Status LDKs polysilicon plants are designed to produce high-purity polysilicon at low cost and low power consumption Parameters Status 100 - 200 Ohm-cm Polysilicon and Improving Polysilicon Purity Current Wafer Production Indicates Good Silicon Quality Quality Supports Solar Single Crystal Production Fixed Electrical Load is Diluted with Capacity Increase Plant Electricity Consumption Power Consumption / Kg Si Falling as Production Ramps 130% Reactor Capacity Demonstrated Poly Reactor Productivity Reactor Power Consumption Better Than Expected STC Conversion at Design and Improving Converter Productivity Full Converter Capacity Demonstrated and Operation is Stable TCS Conversion Near Design and Improving TCS Synthesis Reactor Reactor Operation is Now Stable and Ramping
  • 14. Polysilicon Capacity Plan 4Q 09: 4Q 10: 2011: 3,000 MT Line 1 Line 2 Further Ramp-Up (Xia Cun Plant) Full Mechanical Line 1 & 2 to 3,000MT Production Completion 1st 5,000 MT 4Q 09: 2Q 10: Train Commence Full(Ma Hong Plant) Production Production 2011+ : Full Production 2nd 5,000 MT 2Q 10: 2H 10: Capacity of Train Mechanical Commence Completion Production 25.000MT(Ma Hong Plant) 3rd 5,000 MT 1H 11: 1H 11: Train Mechanical Commence(Ma Hong Plant) Completion Production 2010 2011 Target Cost 1H 10: 2H 10: 1H 11: 2H 11: (per kg) $40 - $60 $35 - $45 $32 - $40 $30 - $35 Production 1H 10: 2H 10: 1H 11: 2H 11: Capacity (MT) 6,000 MT 11,000 MT 16,000 MT 25,000 MT
  • 15. 2,0 GW LDKs Vertical Integration Strategy Silicon Ingot Wafer Cell Module In-House In-House In-House Production Produces solar Worlds largest Worlds largest and Multi and Mono solar wafer semiconductor Crystalline industry grade polysilicon industry and chemicals 3,0 GW capacity 3,0 GW capacity 11,000 MT today today capacity today 4,0 GW capacity 4,0 GW capacity 25,000 MT by end of 2011 by end of 2011 capacity by end of 2011
  • 16. Global Customer Footprint Solar Wafers Germany Netherlands China US Belgium Japan France Korea India Taiwan
  • 17. World-Class Technology: Multi Crystal Bigger Ingot Sizes Wafer Processing Cost ($/Watt) G4 250-270 kg Target $0.04/Watt reduction in wafer processing costs from 4Q10 to the end of 2011 G5 400-450 kg G6 650-800 kg First G6 800 kg Ingot
  • 18. Continued Leadership in Wafer Manufacturing 2010 Capacity Share of Major Wafer Wafer Capacity (MW) Manufacturers From zero to 3,0GW in 5 years From zero to 3,0 GW of Wafer Manufacturing in 5 years ! Source : LDK Solar Marketing Dept 2010
  • 19. LDKs Vertical Integration Strategy Silicon Ingot Wafer Cell Module In-House In-House & In-House In-House In-House Production OEM Produces solar Worlds largest Worlds largest R&D and and Multi and Mono solar wafer investments in semiconductor Crystalline industry process grade polysilicon industry and chemicals 180 MW capacity 3,0 GW capacity 3,0 GW capacity today 11,000 MT today today capacity today 4,0 GW capacity 4,0 GW capacity 1.26 GW 25,000 MT by end of 2011 by end of 2011 capacity by end capacity by end of of 2011 2011
  • 20. Cells: LDK Solar To Manufacture Solar CellsBenefits of In-House Cell Manufacturing Cell Capacity Plan (in MW) Increase level of vertical integration Reduce cost of modules In-house, stable supply of cells Monitor wafer efficiency more closely Integrated R&D efforts for polysilicon, wafer, cell & modules
  • 21. Efficiency Roadmap Project Jing Gang Shan 19.0%-21.0% 21.0%-23.0% Multi-Si Efficiency 18.2%-18.6% Mono-Si Efficiency 20.5%-21.0% 17.5%-18.0% 16.8%-17.0% 19.5%-20.0% 16.2%-16.5% 18.5%-19.0% Full passivation Higher front Thinner cell, rear front & back cell 17.3%-17.5% Higher front contact aspect local contact, high- contact aspect ratio, higher sheet quality surface ratio, higher sheet resistance emitter, passivation resistance emitter, better texturing Current industry better texturing scheme, reduce efficiencies scheme, reduce shading loss, shading loss, better BSF better BSF 2010 2014 = Factors Driving Efficiency Increase
  • 22. LDKs Vertical Integration Strategy Silicon Ingot Wafer Cell Module In-House In-House & In-House In-House In-House Production OEM Produces solar Worlds largest Worlds largest R&D and Acquired Best and Multi and Mono solar wafer investments in Solar module semiconductor Crystalline industry process capacity grade polysilicon industry and chemicals 180 MW capacity 1.5 GW capacity 3,0 GW capacity 3,0 GW capacity today today 11,000 MT today today capacity today 2.5 GW capacity 4,0 GW capacity 4,0 GW capacity 1.26 GW capacity by end of 2011 25,000 MT by end of 2011 by end of 2011 by end of 2011 capacity by end of 2011
  • 23. Module Capacity Plan Module Capacity Plan (MW) today 2011 Suzhou 500 500 Nanchang 1000 1,500 Hefei 0 500 Total 1,500 2,500
  • 24. Target Module Processing Cost ($/Watt) Target Module Processing Cost ($/Watt) Target $0.04/Watt reduction in module processing costs from 4Q10 to the end of 2011
  • 25. Modules: Reliable Quality for Worldwide Customers Module Module Module Certifications Warranty Insurance Recycling MUNICH-RE Insurance Manufactured under stringent One of the most comprehensive Banking institutions want Since beginning of 2010 quality contract standards: warranties in the solar industry: protection guarantees on their LDK Solar is proud member of investments as part of a debt PV Cycle Organization +/- 3% power output tolerance Materials and Workmanship: financing package: covered for 25 years LDK Solar is committed to High conversion efficiency Europes largest insurance finding new ways to make our Power rating: Tight power provider, Munich Re, provides solar modules even more Ability to withstand wind and tolerances within +/- 3% of the an insurance solution which environmentally friendly, from snow load, and extreme module nameplate rating covers the performance increasing both cell and temperature variations warranty of modules production efficiencies, to Long-term Power Output: proactively adopting recycling Rigorous quality control Industry-leading power output Protects our customers and their meeting the highest programs for end-of-life warranty based on the bankers over the 25 year PV modules international standards individual modules actual flash warranty term test results at shipment Industry leading Strengthens customers project 25 year warranty Start Date: From the date financing package by removing of sale, not the date performance risk factor and of manufacture doubt of warranty support Transferability: Transferable to future system owners unlike other standard warranties
  • 26. R&D Targets for the Next 5 Years Parameters In 5 Years Total Energy Consumption 120-140kwh/kg Multi-ingot size G7(1000kg) Wafer Thickness 130-160m Cell Efficiency (Multi-) 19-21% Cell Efficiency (Mono-) 21-23% Module Efficiency (Multi-) 16-20% Module Efficiency (Mono-) 19-21%
  • 27. LDK THIN FILM MODULES T.J. Applied Material technology, high efficiency + Cadmium Free !!
  • 28. Financing schemes opportunities: CDB CDB is a leader in the implementation in national projects, basic industries and the high-technology sector as well as pillar industries and critical infrastructure construction. LDK Solar has entered into a strategic financing agreement with CDB that will provide up to US$8.9 Billion of credit facilities to LDK Solar over a five-year period. The partnership of Chinese economic development Bank with LDK Solar can provide beneficial reference for economic development and to help new Renewable Energy Projects across European Countries and worldwide
  • 29. Conclusion Focus on Low-Cost Strategies & 1 Maintain Cost Leadership 2 Continue to Strengthen Vertical Integration Support PV Energy development in New 3 Developing Countries Our Focus Support PV Energy Expansion on the Mature 4 Countries Consider Worldwide Strategic Alliances & 5 Acquisitions
  • 30. LDK Solar new Campaign
  • 31. Thank you for your attention Luca Piffer Country Manager Italy [email protected]